Atheros' Sales Jump; Shares Rise

The stock edges higher in extended trading.
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SAN FRANCISCO --

Atheros

(ATHR)

grew its top line 29% in the third quarter, delivering financial results at the high end of Wall Street expectations.

But the company has yet to offer its forecast for the fourth quarter, which is where most of its fellow chipmakers have stumbled in recent weeks. Atheros is due to host a conference call with analysts later Monday.

The Santa Clara, Calif., chipmaker said sales in the three months ended Sept. 30 totaled $138 million, compared with $106.3 million at this time last year.

The company said it experienced strong demand for its wireless networking chips in the PC, consumer electronics and networking markets.

Atheros posted net income $10.1 billion, or 16 cents a share, in the third quarter, vs. net income of $9.67 billion, or 16 cents a share, at this time last year.

Excluding stock compensation expenses, as well as a $4.3 million investment impairment, Atheros said it earned 37 cents a share.

Analysts polled by Thomson Reuters were looking for 35 cents a share, excluding the stock option compensation expenses, and presumably, the investment impairment charge.

Atheros said its adjusted gross margin in the third quarter was 49.4%, vs. 50.8% in the second quarter.

Shares of Atheros were up 34 cents, or 2.1%, to $16.47 in extended trading Monday.